A recent Russell Investments and BNY Mellon Investment Management study indicates greater utilization of ESG factors in the decision-making processes of active managers, as reported by Pensions & Investments. Here are some of the highlights, as described in the article:
- 55% of respondents (total=300) say they now use material ESG investment factors to be part of the decision-making. 36% of those cited the possibility of superior risk-adjusted returns as a basis;
- Governance was the most important factor for 86% of respondents.
- An increase of 48% of respondents say they always address ESG issues in their meetings with company management.
- 82% utilize a formal investment policy to guide ESG decisions.
George Michael Gerstein advises financial institutions on the fiduciary and prohibited transaction provisions of ERISA. As co-chair of the fiduciary governance group, he assists clients with tracking, and understanding, the numerous fiduciary developments at the federal and state levels, including the rules and regulations of governmental plans. He also advises clients with respect to the fiduciary duty implications of ESG investing.